Tata Power Company (Tata Power) reported 9% fall in consolidated sales for the quarter ended Dec 2016 to Rs 6683.74 crore. But with 520 bps contraction in operating profit margin, the de-growth at operating profit magnified to 27% (Rs 1402.85 crore). After accounting for higher other income (up 12% to Rs 140.08 crore), higher interest cost (up 8% to Rs 700.95 crore) and higher depreciation (up 29% to Rs 531.80 crore) the PBT (before EO, RRI and Forex gain) stood at Rs 310.18 crore, a fall of 69%. Forex loss for the quarter was higher by 43% to Rs 219.23 crore. Thus the PBT before EO & RRI was down by 89% to Rs 90.95 crore. The rate regulatory income was an income of Rs 152.29 crore compared to an expense of Rs 588.73 crore in the corresponding previous period. And thus the PBT (before EO but after RRI) was flat at Rs 243.24 crore. EO expense for the quarter was nil compared to Rs 71.64 crore in the corresponding previous period. Thus the PBT after EO was up by 41% to Rs 243.24 crore. Taxation was lower by 52% (to Rs 70.64 crore) and thus the PAT was up by 593% to Rs 172.60 crore. Share of profit from associate was up by 32% to Rs 506.41 crore. The minority interest was share of loss of Rs 79.81 crore compared to share of loss of Rs 24.82 crore in the corresponding previous period. Thus the net profit after MI was up by 38% to Rs 599.20 crore. Other comprehensive income was up by 75% to Rs 96.24 crore and thus total comprehensive income was up by 42% to Rs 695.44 crore.
- Consolidated sales including the regulatory income/expenses) was up by marginal 1% to Rs 6836.03 crore. Just a marginal growth in sales was largely due to lower revenue in standalone on account of lower power purchase costs, lower trading at TPTCL and one time recovery in standalone in corresponding previous quarter. Segment sales of power business was up by 1% to Rs 6254.85 crore and that of others was up by 32% to Rs 807.51 crore.
- EBIT was up by 17% to Rs 1114.86 crore with segment profit of power up by 17% to Rs 1061.89 crore and that of others up by 25% to Rs 52.97 crore. Segment profit of power was up by 220 bps to 17%. Growth at EBIT is largely due to recent solar acquisition, on account of full capacity tie up for MPL and no un-favourable tariff order impact as was the case in corresponding previous quarter for TPDDL.
- Rate regulatory income (RRI) includes RRI for earlier years as wel. RRI for the quarter was RS 152.29 crore as compared to RRI expense of Rs 364.87 crore in the corresponding previous period. RRI for earlier years was nil for the quarter compared to an expense of Rs 223.86 crore in the corresponding previous period.
Nine month performance
Sales was lower by 7% to Rs 20730.93 crore. The operating profit was down by 22% to Rs 4499.99 crore with OPM contract by 430 bps to 21.7%. The PBT before EO, RRI and Forex was down by 53% to Rs 1288.03 crore. The forex loss was down by 23% to Rs 447.40 crore and thus the PBT before EO & RRI was down by 61% to Rs 840.63 crore. Rate regulatory income was an expense of Rs 426.26 crore, down by 66%. Thus the PBT before EO was down by 54% to Rs 414.37 crore. The EO was nil for the quarter compared to Rs 71.64 crore in the corresponding previous period. Thus the PBT was down by 50% to Rs 414.37 crore. After accounting for lower taxation (down 81% to RS 103.76 crore), the PAT was up by 18% to Rs 310.61 crore. Eventually the total comprehensive income was up by 1% to Rs 902.87 crore.
Commenting on the Company's performance, Mr. Anil Sardana, CEO & Managing Director, Tata Power said, During the third quarter of FY16-17, Tata Power has improved profitability and has maintained strong operational performance across all business verticals. With a gross installed generation capacity of 10,496 MW, we continue to be India's largest integrated power player as also largest green generator. Our subsidiaries continue to perform well despite challenging business environment. We are confident that our strong growth trajectory will continue thanks to our focus on operational excellence and responsible growth.
Tata Power Company: Consolidated Results
|1612 (3)||1512 (3)||Var. (%)||1612 (9)||1512 (9)||Var. (%)|
|PBT before EO, RRI & Forex||310.18||986.11||-69||1288.03||2730.23||-53|
|PBT before EO& RRI ||90.95||832.54||-89||840.63||2145.79||-61|
|Rate Regulatory Income (RRI)||152.29||-588.73||-126||-426.26||-1251.41||-66|
|PBT before EO||243.24||243.81||0||414.37||894.38||-54|
|PBT After EO ||243.24||172.17||41||414.37||822.74||-50|
|Share of profit/loss from Associates||506.41||383.51||32||884.85||441.16||101|
|Other comprehensive income||96.24||55.04||75||-105.06||257.17||-141|
|Total Comprehensive income||695.44||488.29||42||902.87||897.69||1|
|* Annualised on current equity of Rs 270.48 crore. Face Value: Rs 1|
# EPS cannot be annualised due to the seasonality in business
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database
Tata Power Corporation: Consolidated Segment Results
|Segment||1612 (3)||1512 (3)||Var.(%)||% to total||% to total||1612 (9)||1512 (9)||Var.(%)||% to total|
|Inter Segm't Rev||226.33||13.45||334.12||43.89|
|LESS: Interest expenes||700.95||650.55||8||2216.67||2376.88||-7|
|LESS: EO expenes||71.64||71.64|
|Other unallocable expenses||170.67||56.94||200.78||130.21|
|Note: Figures in Rs crore|
Powered by Capital Market - Live News